Financial Independence / Early Retirement (FIRE)
Discussion
I'm not yet FIRE'd, but I am working on it - following an epiphany earlier this year. In fact, I think it was a post on this forum that led me to sites like mrmoneymustache.
My plan is more FI than anything else and is fairly conservative.
In short, I have one pension kicking in from 60 and another (plus state pension) kicking-in at state pension age. Assuming I continue contributing to these pensions up until age 50, the combined income from state pension age will be enough. So, I need to grow my other funds to provide 100% income needs from age 50-60 and then about 65% on income once the first pension kicks in from 60-state pension age (assumed to be 69 or 70).
I'm 37 soon, so that gives me another 13 years of work. My savings rate is about 40% of current post-tax post-pension income, with 10 years of this behind me already. Assuming slightly lower returns than I've had so far, this should be more than do-able. I've also assumed some things like my wife won't work again and that I have no promotions.
The epiphany was that I can save for a specific target, rather than for a rainy day.
My plan is more FI than anything else and is fairly conservative.
In short, I have one pension kicking in from 60 and another (plus state pension) kicking-in at state pension age. Assuming I continue contributing to these pensions up until age 50, the combined income from state pension age will be enough. So, I need to grow my other funds to provide 100% income needs from age 50-60 and then about 65% on income once the first pension kicks in from 60-state pension age (assumed to be 69 or 70).
I'm 37 soon, so that gives me another 13 years of work. My savings rate is about 40% of current post-tax post-pension income, with 10 years of this behind me already. Assuming slightly lower returns than I've had so far, this should be more than do-able. I've also assumed some things like my wife won't work again and that I have no promotions.
The epiphany was that I can save for a specific target, rather than for a rainy day.
Beanbob said:
I find some sites like mrmoneymoustache quite extreme. I don't want to scrimp and save, living on beans on toast and so on in order to be able to retire at 40. That I don't think would be too much fun. I do however think a healthy balance is the key.
This part chimes with me.I work in banking and get good benefits. Saving around 40% per month in either shares or pension, aiming to retire in my 50s while living OK now.
A colleague is in a hospice at 47. Made me decide I was happy working a few years extra to have some more perks now.
Early retirement = early death.
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
I really struggle with putting more money in a pension pot as there is too much life to live now and I know too many around 50 that have had an early departure 
I know I will probably regret it at 70 
Any of you guys buying annuities though? If not how do you 'salary' yourself monthly on the beach from your pots - 4% pa on £1m doesn't really do much these days...
I know I will probably regret it at 70 Any of you guys buying annuities though? If not how do you 'salary' yourself monthly on the beach from your pots - 4% pa on £1m doesn't really do much these days...
Yipper said:
Early retirement = early death.
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Fill your time with more fulfilling activities such a charity work, learning new skills, travelling etc. No time for the body to shut down Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
d government only let me and the wife out in £10k each a year.garyhun said:
Yipper said:
Early retirement = early death.
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Fill your time with more fulfilling activities such a charity work, learning new skills, travelling etc. No time for the body to shut down Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Yipper said:
Early retirement = early death.
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Interesting. I don't doubt the research, but wonder if there might be another relevant aspect.
I keep very busy with hobbies (bound to include cars being on PH) and other physical activities. Continuing with my portfolio management certainly keeps the brain excercised too. Time passes far too quickly.
However, I do have one or two near neighbours, who seem to do little more than watch daytime TV.
It would be interesting to know if there might be a mortality difference. After all, you could be told what to do each day by an employer, or similarly work just as hard each day, doing what you choose to do.
Hopefully for me, it is activity that might help just a little, to keep going as long as possible.
Edited by Jon39 on Thursday 31st August 19:56
i can't add a lot but for me personally i want to work until i die, I work in the building trade and its hard, but i don't have to do all the physical work.
I enjoy doing it and couldn't imagine not working, i like the chase!
If i was a multi multi millionaire id give it up, only so i could do luxurious things. but thats unlikely so ill carry on
I also agree about the early death stuff, I've seen it happen and can see it now in my family. Wifes dad is 60 and retired, in the last 3 years or so since retiring he has aged significantly, my dad on the other hand is 79, was working up until he got cancer this year, is now over the cancer and is desperate to get back working. He is a very young 79! i hope I'm like that at his age! I believe its because his mind is always busy, where as the fil doesn't do a great deal, it seems like he just sits there and goes for the odd walk.
Ive worked for people who are 50 years old and its like they are 90.
I enjoy doing it and couldn't imagine not working, i like the chase!
If i was a multi multi millionaire id give it up, only so i could do luxurious things. but thats unlikely so ill carry on
I also agree about the early death stuff, I've seen it happen and can see it now in my family. Wifes dad is 60 and retired, in the last 3 years or so since retiring he has aged significantly, my dad on the other hand is 79, was working up until he got cancer this year, is now over the cancer and is desperate to get back working. He is a very young 79! i hope I'm like that at his age! I believe its because his mind is always busy, where as the fil doesn't do a great deal, it seems like he just sits there and goes for the odd walk.
Ive worked for people who are 50 years old and its like they are 90.
Yipper said:
garyhun said:
Yipper said:
Early retirement = early death.
Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
Fill your time with more fulfilling activities such a charity work, learning new skills, travelling etc. No time for the body to shut down Be very careful about giving up work too soon.
The body shuts down and the mind subconsciously becomes worthless to society.
http://www.medicaldaily.com/early-retirement-work-...
More FICOW than FIRE..Financially independent continue on working.
I think we are all different on this but I enjoy the adrenalin. Was in my mid fifties when fully independent, Am 68 now and still a (non powerfully built) director of a number of companies. This is quite demanding as it happens and not the old model of golf and martinis (I do neither). I am not doing the 70 hour weeks I used to, but I would say 30 hours a week with some peak activity depending on the demands of the relevant company.Now and then I consult on technology strategy with organizations.
I also chair the jury for a national technology awards event and Ama co-founder of an exotic car show for charity, so not 100% revenue based.
I do not have the imagination to fill my time with leisure -have a 7am gym workout with a trainer four days a week, and of course enjoy doing a variety of automotive pursuits as time permits...
I think we are all different on this but I enjoy the adrenalin. Was in my mid fifties when fully independent, Am 68 now and still a (non powerfully built) director of a number of companies. This is quite demanding as it happens and not the old model of golf and martinis (I do neither). I am not doing the 70 hour weeks I used to, but I would say 30 hours a week with some peak activity depending on the demands of the relevant company.Now and then I consult on technology strategy with organizations.
I also chair the jury for a national technology awards event and Ama co-founder of an exotic car show for charity, so not 100% revenue based.
I do not have the imagination to fill my time with leisure -have a 7am gym workout with a trainer four days a week, and of course enjoy doing a variety of automotive pursuits as time permits...
OP, are you on Mr Money Mustache Forum?
My FIRE target is 45 ish.
Been living the MMM lifestyle (ish) for a few years, doing it very seriously for a year now I am getting closer to the FIRE date. (monthly tracking all spending, saving and what not)
Very rewarding but quite a bit of effort. A bit taboo in the UK, and I don't really share the plan with anyone other than the Mrs as friends / family don't understand. When we come to FIRE I will probably just tell people that we are taking a career break for a year as that is a bit more understood.
As for those who think you will die early, the plan is not to sit on the couch watching TV.. most Mustachians tend to be fit, active and healthy. Some do stop work all together but do a lot more exercise as they have more spare time. Others do "side gigs" which often involves manual labour. Benefit of side gig is you get to earn some money plus stay active. Mr M himself does house building IIRC.
My FIRE target is 45 ish.
Been living the MMM lifestyle (ish) for a few years, doing it very seriously for a year now I am getting closer to the FIRE date. (monthly tracking all spending, saving and what not)
Very rewarding but quite a bit of effort. A bit taboo in the UK, and I don't really share the plan with anyone other than the Mrs as friends / family don't understand. When we come to FIRE I will probably just tell people that we are taking a career break for a year as that is a bit more understood.
As for those who think you will die early, the plan is not to sit on the couch watching TV.. most Mustachians tend to be fit, active and healthy. Some do stop work all together but do a lot more exercise as they have more spare time. Others do "side gigs" which often involves manual labour. Benefit of side gig is you get to earn some money plus stay active. Mr M himself does house building IIRC.
red_slr said:
OP, are you on Mr Money Mustache Forum?
My FIRE target is 45 ish.
Been living the MMM lifestyle (ish) for a few years, doing it very seriously for a year now I am getting closer to the FIRE date. (monthly tracking all spending, saving and what not)
Very rewarding but quite a bit of effort. A bit taboo in the UK, and I don't really share the plan with anyone other than the Mrs as friends / family don't understand. When we come to FIRE I will probably just tell people that we are taking a career break for a year as that is a bit more understood.
As for those who think you will die early, the plan is not to sit on the couch watching TV.. most Mustachians tend to be fit, active and healthy. Some do stop work all together but do a lot more exercise as they have more spare time. Others do "side gigs" which often involves manual labour. Benefit of side gig is you get to earn some money plus stay active. Mr M himself does house building IIRC.
Forgive me for saying so, but what you're describing seems a bit bonkers. Especially the bit where you make a great effort to stop work and then take up .....work...... except instead of 'work' you call it a 'side gig'. My FIRE target is 45 ish.
Been living the MMM lifestyle (ish) for a few years, doing it very seriously for a year now I am getting closer to the FIRE date. (monthly tracking all spending, saving and what not)
Very rewarding but quite a bit of effort. A bit taboo in the UK, and I don't really share the plan with anyone other than the Mrs as friends / family don't understand. When we come to FIRE I will probably just tell people that we are taking a career break for a year as that is a bit more understood.
As for those who think you will die early, the plan is not to sit on the couch watching TV.. most Mustachians tend to be fit, active and healthy. Some do stop work all together but do a lot more exercise as they have more spare time. Others do "side gigs" which often involves manual labour. Benefit of side gig is you get to earn some money plus stay active. Mr M himself does house building IIRC.
Why don't you just call the work you do a "side gig"? It would save the painful sounding bit in the middle where you work towards 'side-gigging' instead of 'working'.
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